Medicare tax

The Medicare tax is a federal tax which funds are accumulated for medical benefits paid to qualifying individuals when they reach a specified age.

An employer is responsible to deposit 1.45 percent of an employee's qualifying gross wages, for their portion of an employee's Medicare liability. The employer is also responsible for withholding a matching 1.45 percent of the employee's qualifying gross wages as the employee's portion of the Medicare tax liability.

This tax is reported quarterly using federal form 941 and is due April 30, July 31, October 31, and January 31 (of the following year).